The Senate Appropriations and Revenue Committee advanced the House-passed measure.
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It continues the momentum for Republicans hoping to phase out individual income taxes in Kentucky. They say it will promote further economic gains and population growth.
Kentucky's Senate passed a bill that would cut the individual income tax rate for residents.
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"The safety valves are built in such a way that I'm confident that we will be able to sustain the growth of the economy in Kentucky and meet the needs of our citizens as it relates to state government," Senate President Pro Tem David Givens said.
The bill's detractors say cutting the individual income tax will deprive the state of funds needed to bolster spending on education, public safety and other priorities.
The bill follows up on last year's tax overhaul, which set the stage for a reduction of the state’s individual income tax rate from 5% to 4.5% at the start of this year. The new measure finalizes that cut.